January 2012

January 31, 2012

Tax Court Rules on Homebuyer Credit When Former Residence Is Being Sold

The Tax Court held that a married couple’s old house, which they continued to use while trying to sell it, qualified as a principal residence, and therefore they did not meet the timing requirement to qualify for a first-time homebuyer credit when they purchased a new house.

January 27, 2012

Streamlined Installment Agreement Program Modified

The IRS Small Business/Self-Employed Division modified the maximum unpaid balance of assessment taxpayers must meet to qualify for its streamlined installment agreement program and extended the time for payment.

January 24, 2012

New Form 990 Has a Few Significant Changes for 2011

The IRS posted the final 2011 Form 990 and instructions on its website.

January 23, 2012

IRS: Tax Preparers Who Want to Prepare 2011 Returns Must Renew PTINs

The IRS is sending information letters to tax return preparers who have not yet renewed their preparer tax identification numbers (PTINs) for the 2012 filing season.

January 20, 2012

Statutory Definition of Specified Notional Principal Contract Extended Through 2012

The IRS issued temporary and proposed regulations on dividend equivalents for purposes of Sec. 871(m).

January 20, 2012

Final Regs. Issued on Exclusion of Damages for Personal Physical Injury

The IRS on Friday issued final regulations relating to the exclusion from gross income for damages received on account of physical injuries or sickness.

January 19, 2012

Annual Update on Adequate Disclosure of Return Positions Issued

The IRS released updated guidance identifying when a taxpayer’s disclosure of an item or position in an income tax return is adequate for purposes of reducing the understatement of tax penalty and the tax return preparer penalty for understatement due to unreasonable positions.

January 17, 2012

IRS Issues Regs. on Interest Expense Allocation and Apportionment for Partners

The IRS has issued temporary and proposed regulations that make four changes to the rules for allocating and apportioning interest expense for partners in partnerships.

January 13, 2012

IRS Gives Transitional Relief to Form 8937 Filers

The IRS announced that, due to its late release of the required form, it will not impose penalties on issuers of stock who report incorrect 2011 information required under Sec. 6045B, as long as they make a good-faith effort to timely comply with the requirements.

January 12, 2012